FIN-1.51 - FY 2010-11 Supplemental Budget Over-Expenditure Process

1. At the end of the fiscal year, some City bureaus have current or projected expenditures in excess of approved appropriations in major object codes for ongoing operations.

2. Whenever possible, these over-expenditures shall be covered by transfers from other identified savings within bureau appropriations to avoid unnecessary draws on contingencies.

3. To prevent over-expenditure, which would be in violation of Local Budget Law ORS 294.435, it is necessary that appropriation be transferred within various funds and appropriation units.

4. To prevent over-expenditure in the Transportation Operating Fund and retain the federal/local funding balance reflected in the Eastside Streetcar project construction budget, it is necessary to transfer $5 million from the LID Construction Fund into the Transportation Operating Fund to cover expenditures on the Eastside Streetcar project.

5. Exhibit 1, attached, includes all incremental changes to the City appropriation schedule as a result of the Over-expenditure Process.

6. Exhibit 2, attached, shows, for informational purposes, a reconciliation of changes to all funds.

a. The FY 2010-11 City budget is amended and appropriations transferred within funds in accordance with Exhibit 1.

b. That the Auditor's Office transfer $5 million from the LID Construction Fund to the Transportation Operating Fund to support Eastside Streetcar expenditures.

c. The actions amending the FY 2010-11 budget contained in this ordinance are binding City policy.

Section 2. The Council declares that an emergency exists because it is necessary to adjust appropriations without delay in order to prevent over expenditures in major object codes; therefore, this ordinance shall be in force and effect after its passage by Council.